PacificNet Epro Expands New Contact Center Operation in China due to Significant Growth in Customer Demand for CRM Services; New Guangzhou Call Center Adds Revenue and 50% Operating Capacity

Business Wire, Sept 21, 2005

HONG KONG -- PacificNet Inc. (Nasdaq:PACT), a leading provider of customer relationship management (CRM), call center, interactive voice response (IVR) services and value-added services (VAS) in China, announced today that its PacificNet Epro ("Epro") subsidiary will launch a new 250-seat call center in Guangzhou, China, due to a significant increase in customer demand for call center services in Hong Kong and China. Epro believes that the contact center expansion will lead to over 40% annual revenue growth in the coming years. Furthermore, the new facility in China should lead to growth in profit margin because the labor cost and office facility is less than half of the cost in Hong Kong.

Due to the recent increase in the demand for telemarketing and call center business, PacificNet Epro purchased a new call center facility in China, to cope with the rapidly growing business of the company. The new contact center is located in a Grade-A office building in Guangzhou, occupying one floor with over 18,000 sq. ft., hosting more than 250 seats. This new site is to supplement the existing 400-seat call center facility in Hong Kong hosting over 800 call center agents, which has been operating in above full capacity for the past year. The combined Hong Kong-China operation will expand Epro's total call center capacity to 650 seats and over 1,200 agents, serving existing and new clients in both Hong Kong and mainland China.

Recently, there has been increasing demand for Epro's outsourcing contact center services, especially from the industries of telecom, banking, market research and fast-moving consumer goods, among others. Epro aims to enhance clients' competitive edge that maximizes channels of access to their customers, whether through telemarketing, cross-selling, or after-sales services, so as to enable efficient and effective interaction with customers to handle expanding business opportunities. Epro provides state-of-the-art CTI equipment, intelligent contact center systems and expertise to provide inbound services, outbound services, facilities management and IVRS support services to meet clients' needs.

With the booming economic growth in China and Hong Kong, the government has launched an economic development plan to promote cross-boarder business co-operation between Hong Kong and mainland China, called "the Closer Economic Partnership Arrangement (CEPA)." By setting up the new call center in China, PacificNet Epro hopes to achieve cost-effective capacity expansion, and new revenue generation from domestic and multinational clients.. The new Guangzhou call center is planned to enter operation in November, 2005.

Carol Chang, Chief Operating Officer of PacificNet Epro, stated, "The development of our Guangzhou facility is the strategic business decision that indicates our long-term commitment in the growth prospect of our contact center business. With over 15 years of local operating experience as a leading call center provider, our management team is confident of continuing the business growth, and expanding market share, both in Hong Kong and China."

Tony Tong, Chairman and CEO of PacificNet, stated, "This business expansion is a strong vote of confidence in our future development in China's growing CRM call center market. A growing number of domestic and multinational companies cross-industry are selecting us to enhance customer services. This demand for CRM services reflects the increasingly competitive nature of the China marketplace, as customers choose a provider not solely based upon price, but on customer service. We believe that the CRM contact center has emerged as the new competitive advantage for the market leaders in China and we are well positioned to benefit from this trend."

About PacificNet

PacificNet Inc. (www.PacificNet.com), through its subsidiaries, invests in and operates companies that provide Outsourcing and Value-Added Services (VAS) in China, such as call centers, telemarketing, CRM, business process outsourcing (BPO), interactive voice response (IVR), mobile applications, and communications product distribution services. PacificNet's clients include the leading telecos, banks, insurance, travel, marketing, and business services companies, and telecom consumers, in Greater China. PacificNet's corporate clients include China Telecom, China Mobile, Unicom, PCCW, Hutchison Telecom, Bell24, SONY, TCL, Huawei, American Express, Citibank, Bank of China, and Hong Kong Government. PacificNet employs over 1,400 staff in its various subsidiaries throughout China with offices in Hong Kong, Beijing, Shenzhen, Guangzhou, and branch offices in 26 provinces in China, and is headquartered in Minneapolis USA and Hong Kong.

PacificNet Epro (www.EproTel.com.hk) is the industry leader and leading provider of outsourced call center, telemarketing, CRM, VAS and IVR services with over 15 years of field experience in greater China in the areas of outsourced call center services, training and consulting services, and call center management systems.